corporate responsibility report...

CORPORATE RESPONSIBILITY REPORT 2013

GSR CORPORATE RESPONSIBILITY REPORT 2013 | Partnerships for Development GSR CORPORATE RESPONSIBILITY REPORT 2013 | Partnerships for Development

OUR MISSION, VISION & VALUES OUR MISSION IS THE RESPONSIBLE AND PROFITABLE PRODUCTION OF GOLD.

OUR VISION IS TO BUILD A BRAND NAME MINING COMPANY THAT:

• Delivers superior returns to investors

• Values and develops our people

• Is committed to international practices

and conduct

• Is a partner of choice for host communities

and governments

OUR VALUES ARE:

• Respect, honesty and open communications

in all relationships

• Commitment to safety, employee well-being

and protection of the environment

• Teamwork and accountability throughout

the organization

• Responsible corporate citizenship

PHOTOGRAPHIC CREDITS: NATALIE RAFFIELD,

PHILIP MOSTERT, AND THE GSR TEAM

THE FORWARD-LOOKING STATEMENTS

MADE IN THIS REPORT ARE BASED ON

ASSUMPTIONS AND JUDGMENTS OF

MANAGEMENT REGARDING FUTURE EVENTS

AND RESULTS. SUCH FORWARD-LOOKING

STATEMENTS, INCLUDING BUT NOT LIMITED

TO THOSE WITH RESPECT TO RESERVE AND

RESOURCE ESTIMATES, COST AND TIMING

OF THE DEVELOPMENT OF NEW DEPOSITS,

TIMING AND AMOUNT OF ESTIMATED FUTURE

PRODUCTION, ESTIMATED COSTS OF FUTURE

PRODUCTION, OPERATIONAL CAPABILITIES,

AND GOLD PRICE, INVOLVE KNOWN AND

UNKNOWN RISKS, UNCERTAINTIES, AND

OTHER FACTORS WHICH MAY CAUSE THE

ACTUAL RESULTS, PERFORMANCE OR

ACHIEVEMENTS OF THE COMPANY TO BE

MATERIALLY DIFFERENT FROM FORECAST

FUTURE RESULTS, PERFORMANCE OR

ACHIEVEMENTS EXPRESSED OR IMPLIED BY

SUCH FORWARD-LOOKING STATEMENTS.

SUCH FACTORS INCLUDE, AMONG OTHERS,

THE ACTUAL PRICE OF GOLD, THE ACTUAL

RESULTS OF CURRENT EXPLORATION,

DEVELOPMENT AND MINING ACTIVITIES

AND CHANGES IN PROJECT PARAMETERS

AS PLANS CONTINUE TO BE EVALUATED, AS

WELL AS THOSE FACTORS DISCLOSED IN THE

COMPANY’S FILED DOCUMENTS.

This report is Golden Star’s 8th annual report

on corporate responsibility, which summarizes

our performance and is our communication

on progress for the UN Global Compact.

The year 2013 saw dramatic highs and lows

in our business. Despite our focus on ‘If it is

not safe, do not do it’, to my great sadness,

John Asare was fatally injured in a mud rush

in our underground mine on the 23rd April.

Three other team members were rescued

from the mud rush, for which I am eternally

grateful. The strength of our team to ‘be each

other’s keepers’ brought a little light to this

tragic day.

Also in April, we celebrated the re-open-

ing of the Prestea Underground Mine with a

Grand Durbar attended by hundreds of peo-

ple including the Paramount Chief Osagyefo,

Dr. Kwamina Enimil VI, Divisional Chiefs, and

elected representatives. The Western Region-

al Minister officiated over the event on behalf

of the Ghanaian President, his Excellency Mr.

John Mahama, and the community rejoiced

that the event received showers of blessings.

By May, the dramatic dip in the gold price

placed Golden Star, and our industry more

generally, in very challenging times. I am

thrilled that, despite these challenges, we

continued through the remainder of 2013 with

a focus on meeting our production and cost

goals, and achieving our standards, whilst

making considerable improvements to the

sustainability of our business. We completed

the entire year without a reportable

environmental incident at any operational or

exploration site.

Whilst the gold price slowly recovers some

lost ground, we remain focused on the ‘re-

sponsible and profitable production of gold’.

As I recently discussed with my Ghanaian

leadership teams, now more than ever we

must remain patient. We have a bounty of

future projects, and when the economics

become right, we will look to our employ-

ees, contractors, regulators, and stakeholder

communities to fully support the more rapid

advancement of these developments for the

benefit of all.

Sam Coetzer President and Chief Executive Officer

MESSAGE FROM THE CEO


UN GLOBAL COMPACT The United Nations (UN) Global Compact’s 10 principles on human rights, labour, the environment, and anti-corruption aim to ensure that business benefits economies and societies everywhere. The following tables present our goals and progress for 2013 as well as our goals for 2014. 2013 UN GLOBAL COMPACT GOALS AND PROGRESS

REVIEW THE GENERAL HUMAN RIGHTS STANDARDS /

PERFORMANCE OF OUR SUPPLIERS AND PROVIDE A

REPORT TO THE SUSTAINABILITY COMMITTEE WITH

RECOMMENDATIONS

EXTEND HARASSMENT AND DISCRIMINATION

AWARENESS AND PREVENTION TRAINING TO OUR

WIDER WORKFORCE

EXAMINE WAYS IN WHICH BANKING SERVICES CAN BE

PROVIDED TO EMPLOYEES WITHOUT SALARIES PAID

TO A BANK

IMPLEMENT LEAD-INDICATOR CONTROL MEASURES

TO FURTHER REDUCE OUR LOST TIME INJURY

FREQUENCY RATE (LTIFR)

EXPAND RECYCLING INITIATIVES WITH COMPANIES

OWNED BY TRADITIONAL LEADERS, IN LINE WITH

EXISTING PRACTICES AT WASSA

PROVIDE DETAILED PAYMENT INFORMATION ON A

QUARTERLY BASIS TO THE EITI IN GHANA, IN

SUPPORT OF THE ANTI-CORRUPTION PROGRAMME

HUMAN RIGHTS DESKTOP REVIEW CONDUCTED FOR

TOP 20 SUPPLIERS AND TOP 10 SERVICE PROVIDERS

NOT COMPLETED

IN 2013, 83% OF OUR WORKFORCE (EMPLOYEES

AND DIRECT CONTRACTORS) WERE PAID TO A BANK

ACCOUNT. ALL GSR EMPLOYEE SALARIES ARE

REQUIRED TO BE PAID INTO A BANK ACCOUNT

LEAD INDICATOR MEASURES IMPLEMENTED IN 2013.

LTIFR INCREASED TO 0.38.

REVIEW CONDUCTED. IT WAS DETERMINED

THAT CURRENT MARKET WAS NOT CONDUCIVE TO

THIS APPROACH

COMPLETED IN 2013. DATA ON PAYMENTS

MADE AVAILABLE TO THE EITI AND ARE MADE

AVAILABLE IN MONTHLY REPORTS

GOALS PROGRESS

HUMAN RIGHTS

LABOUR STANDARDS

ENVIRONMENT

ANTI-CORRUPTION

CONTINUE TO REVIEW THE GENERAL HUMAN RIGHTS STANDARDS FOR GSR

AND OUR SUPPLIERS. PROVIDE AN UPDATED REPORT TO THE SUSTAINABILITY

COMMITTEE WITH RECOMMENDATIONS.

IMPLEMENT A TRAINING PROGRAMME FOR HUMAN RIGHTS FOR THE GSR

SECURITY PERSONNEL

IMPLEMENT LEAD-INDICATOR CONTROL MEASURES AIMING TO FURTHER REDUCE

OUR LTIFR

PROVIDE AN UPDATED INCIDENT REPORTING STANDARD THAT COVERS THE

BUSINESS WITH A VIEW OF PROVIDING A BETTER UNDERSTANDING OF INCIDENTS

AND HOW TO FURTHER PROTECT EMPLOYEES AND COMMUNITIES

FINALIZE THE THIRD-PARTY EVALUATION OF OUR ASSET RETIREMENT

OBLIGATIONS (ARO). WORK WITH OPERATIONS TO FULLY UNDERSTAND THE

TIMING AND REQUIREMENTS FOR THE ARO

PROVIDE DETAILED QUARTERLY PAYMENT INFORMATION TO THE EITI IN GHANA,

IN SUPPORT OF THE ANTI-CORRUPTION PROGRAMME

PROVIDE QUARTERLY INFORMATION TO THE PARTIES THAT SHOULD RECEIVE

PAYMENTS AS A RESULT OF OUR ROYALTIES PAID TO THE GOVERNMENT OF GHANA

KEY AREA GOALS AND OBJECTIVES

2014 UN GLOBAL COMPACT GOALS


OUR PEOPLEAt Golden Star, we pride ourselves on the employment that our operations generate for local communities, as well as our contributions to regional and national economies. Despite the dramatic reduction in the price of gold, we value and recognize the efforts that have been made by our team to initiate continuous improvement projects, to maintain morale, and to strengthen our business in the face of adversity.

DID YOU KNOW?

• Of our 2,317 employees, 98% are Ghanaian.

• Nearly half our Ghanaian employees hail from communities that are close to our operations.

• Bogoso has comprehensive local hiring conditions forming part of the corporate social responsibility (CSR) agreements signed with communities in 2012.

EMPOWERING WOMEN

Inaugurated in 2010, the Golden Star Ladies’

Clubs were formed by motivated women

in our workforce. The club aims to enhance

performance and empower our female

employees to be advocates for issues

concerning women both at work and in

the broader community.

Breast cancer is the leading cancer in

Ghana. Therefore, in October 2013, the

Golden Star Ladies’ Clubs recognized Breast

Cancer Awareness month by conducting

women’s health presentations and breast

screenings in conjunction with our partners

at the Ghana Health Service (GHS) and

Deutsche Gesellschaft für Internationale

Zusammenarbeit (German Society for

International Cooperation - GIZ). The

programme was a resounding success

with over 580 women from our workforce,

their families and communities attending

the screenings. Through the month of

programmes, our ladies’ clubs also raised

donations of cash, goods and services

of over GH¢ 27,000 in value, including

GH¢ 15,000 donated to women’s charities.

These achievements would not have been

possible without the generous support of

our partners, including three of our major

suppliers – DHL Global Forwarding, Primus

Catering Services and International SOS.

GSSTEP / CYAP AT WASSA

Employment, particularly for the youth

(in Ghana this is people from age 18 to 40),

continues to be of the foremost concerns of

our catchment communities. Established

in 2009, the Golden Star Skills Training and

Employability Programme (GSSTEP) focuses

on building practical skills in a variety of areas,

such as masonry, carpentry, and electrical

works. The GSSTEP programme enhances

the skills available in the local economy by

imparting capacities to community members

that will last well beyond the life of the mine.

To date, there have been 6 programmes

with 271 graduates, most whom have been

employed on resettlement projects.

Within the broader GSSTEP programme,

in 2013, we initiated a Community Youth

Apprenticeship Programme (CYAP) at

Wassa, which offers selected local residents

a one-year attachment within the company.

The pilot project enrolled 44 young people

(34 male and 10 female) from 15 catchment

communities in disciplines ranging from

welding and drill rig maintenance, to fixed

plant, heavy equipment, and pump operations.

As a result of CYAP, local graduates will be

better positioned to fill skilled employment

vacancies within the company to further boost

local hiring.


HEALTH AND SAFETYAt Golden Star, we are committed to safety and employee well-being. A comprehensive two year health and wellbeing plan adopted in 2013 harnessed the expertise of a variety of partners to assist us in realizing our health and wellbeing objectives. The health outcomes have been remarkable, with considerable improvements in fitness for work management, and medical diagnosis and treatment, resulting in improvements in employee productivity and wellbeing.

ENHANCED MALARIA DIAGNOSIS

Malaria is the leading cause of mortality in

Ghana, particularly among pregnant women

and children under five years. It is also one

of the most common illnesses affecting our

employees, accounting for some 20% of time

away from work for illness. As the illness is

potentially life-threatening, we have made

persistent efforts at malaria prevention

and treatment.

In late 2012, with the support of our medical

services provider, International SOS, we

improved our health management of malaria

illness cases by being able to conduct rapid

testing at any time, and making available full

blood screening for strain diagnosis coupled

with strain-targeted treatment. The results

of the programme have been exceptionally

promising. In 2013, our clinics reported a 62%

reduction in malaria cases, from 2,579 in 2012

to 960 in 2013, with a 6% reduction in total

time away from work for malaria. Golden Star

and International SOS will work to sustain the

momentum of the programme in 2014 with a

view of continual improvement.

GIZ

Golden Star and GIZ started working together

for the benefit of our employees, their fami-

lies and our stakeholder communities in 2011.

We collaborated on a variety of programmes

addressing community and work health and

wellbeing. The initial employee/community

wellbeing programme was launched for our

DID YOU KNOW?

• Our Wassa team achieved 11 million hours LTI free.

• The Bogoso employees achieved 1 year LTI free – almost 5 million hours.

• As at the end of 2013, the 12 month rolling LTIFR for GSR was 0.37, for our contractors was 0.40, and combined was 0.38.

Wassa catchment communities with

prevention-focused health screenings, and

training sessions on a variety of health topics

as well as pension planning. GIZ has worked

to develop a broader strategic alliance

between GIZ, the Ghana Health Service (GHS)

and large private sector companies in

Ghana, including Golden Star.

In late 2013, Golden Star, GIZ, and the GHS

launched a health stewardship initiative for

the Bogoso stakeholder communities. Central

to the project is the strengthening of part-

nerships and coordination between public,

private, and civil society organizations at the

community, district, regional, and national

levels. As part of Golden Star’s contribution to

the project, a rural health clinic has been built

in the Bogoso area.

Key components of the programme include

the provision of basic health services

including prevention, testing, and counseling,

as well as providing treatment facilitates

for infectious and non-communicable

diseases. A knowledge-building and

education campaign on disease-prevention,

social protection measures, and debt

counseling aims to further improve overall

community health and well-being.

DID YOU KNOW?

• Ghana has a 79% immunization coverage, up from 69% in 2003. In the last 3 years, Golden Star has continued to support the national immunization programmes in our catchment communities.

• Under-five mortality rates (per 1,000 live births) in Ghana reduced from 111 in 2003 to 80 in 2008. Our work building community health facilities, providing medical equipment in partnership with Project C.U.R.E., provision of National Health Insur-ance Scheme (NHIS) registration for over 7,000 people each year and pre-vention-focussed health screenings (with GIZ) for over 5,500 people to date, contribute to this improvement.


Our mines have a finite life. Therefore, to provide the opportunity for longer-term benefits from our operations, we established the Golden Star Development Foundation (GSDF), which is funded with US$1 for every ounce of gold produced plus 0.1% of pre-tax profit. The GSDF funds a variety of community projects, including health, education, and community infrastructure initiatives that are selected by local Community Mine Consultative Committees (CMCC) that represent our 80,000+ local stakeholders. The CMCCs are made up of local community leaders and they serve as the focal point for our community partnerships allowing communities to select the types of projects they see as important for the development of their communities.

COMMUNITY DEVELOPMENT

GSDF COMMUNITY CENTRES

In 2013, many of our local communities

– through the GSDF and their respective

CMCCs – prioritized the development of

community infrastructure. Community

centres were built at Bondaye, Chujah, and

Kwame Niampah in the Bogoso area and

Nsadweso and Awunakrom in the Wassa

area. Each is equipped with an office, store

room, electrical access, and seating.

A 300-seat community centre was also

built at Pretiat as part of the Awunakrom

resettlement project (see Resettlement).

The community centres serve as an

important social amenity for local residents

as the venue for events such as weddings,

engagements, and graduations as well

as the location for stakeholder consultation

sessions. In 2013, the construction costs

for the community centres totaled

US$0.33M.

DID YOU KNOW?

• In Ghana, 86.3% of children complete primary school - up from 80% in 2007. Since 2007, Golden Star has built 6 schools (via the GSDF), provided bussing to school for 7 communities, paid scholarships to over 580 students and subsidised educational expenses for some 3,000 other students each year.

• Community electrification rates increased from 54% in 2007 to 59% in 2009. Through the GSDF, we have provided access to electricity or supported its distribution to residents in Prestea, Mbease Nsuta, and Akyempim (communities with some 40,000 residents), as well as 3 school blocks, a community clinic and our resettlement communities.


PROJECT C.U.R.E.

Through an ongoing partnership with

Project C.U.R.E., Golden Star and the GHS

continued to distribute medical supplies

(valued at approximately US$0.4M to local

communities in 2013). This was all made

possible by contributions from the GSDF /

CMCCs. Aiming to ensure a focused delivery

of medical equipment and supplies, needs

assessments were completed by

Project C.U.R.E. before the items were

shipped. In 2013, some of Golden Star’s

corporate team in Denver helped to pack

the container with the supplies from the

Project C.U.R.E. warehouse.

GIZ AND GSOPP COLLABORATION

Golden Star is in the second year of a

partnership with GIZ and the Golden Star Oil

Palm Plantation (GSOPP), with collaboration

from the Ghana Ministry of Health (MoH) and

Ministry of Employment and Social Welfare.

With an expected outreach to some 13,500

people in selected stakeholder communities,

the combined economic empowerment and

wellbeing programme will include a poverty

impact assessment, the development of

an integrated farming system for oil palm

production, and the establishment of farmer-

based organizations to act as channels

and multipliers. The programme aims to

strengthen community self-governing

capacity and, ultimately, overall economic

sustainability.

HUMAN RIGHTS As a responsible corporate citizen GSR annually requires its leaders to affirm their commitment to the human rights standards adopted by our business.

HUMAN RIGHTS REVIEW

Achieving business success would not be

possible without the contributions of our sup-

pliers and service providers; thus, achieving

our sustainability goals is integral to our value

chain and our areas of influence.

In 2011 and 2012, we set a UN Global Com-

pact goal to conduct a desktop human rights

review of our top suppliers and service pro-

viders. The review uncovered few material

instances requiring further action by Golden

Star. Where instances were uncovered, our

Supply Departments have initiated dialogue

to gain further information and understand-

ing. No further action was required following

this dialogue.

As a result of the review, Golden Star has ad-

opted a variety of management practices to

proactively address human rights concerns.

Chief among these are:

• Provision of training for operational sites

so that suppliers with annual contracts of

over US$1M are subject to human rights

screening;

• Developed a “supplier code of conduct”;

• Reviewed existing GSR grievance

mechanisms to ensure that they include

human rights concerns;

• Incorporated human rights concerns into

CMCC meetings; and,

• Developed and implemented a commu-

nications plan for all GSR business units

to communicate the results of the human

rights review.

These steps are in addition to our ongoing

commitments to protecting and promoting

human rights as well as our human rights

goals for 2014.

DID YOU KNOW?

• In 2013, 85% of the money paid by our Ghanaian operations was paid to Ghanaians or to registered Ghanaian companies.


REHABILITATION AND NEXT LAND USE PLANNING

In August 2013, the Executive Director of

the Forestry Commission and officials of the

Forestry Services Division (FSD) participated

in a tour of our operations and our proposed

Mampon-Abronye project, which is partially

located within the Opon Mansi Forest

Reserve – a timber production forest. The

visit allowed us to highlight our commitment

to sustainable land use and to showcase our

extensive expertise in mine-site rehabilitation.

By working with government sectors, we

continue to ensure that closure planning

remains an integral part of all the phases

of project development and execution.

The field inspection included tours of rehabil-

itated pits and waste dumps, and focused on

backfilled pits, as the proposed Mampon pit

would be completely backfilled to facilitate

the return of the forest area to future forest /

timber production. At the Mampon-Abronye

project area, the visitors met with the elders

and people of the communities, and visited

the exploration drilling sites in the area.

The Executive Director and his team

were impressed and remarked that some

of Golden Star’s backfilled pits exhibited

forest tree growth as good as that of the

forest reserves.

To further this collaboration, the FSD, with

the support of the Ghana Wildlife Service,

conducted an inventory analysis of the

proposed project area, to independently

validate the Bogoso environmental impact

assessment studies.

ENVIRONMENT SUSTAINABILITY OF LAND USES

In November, Bogoso was privileged to

host a visit by the Honourable Minister for

Environment, Science and Technology, as he

toured mines in the Western Region. During

the visit, the Minister took a helicopter flight

over the Bogoso and Prestea concessions

to observe Bogoso’s operations and reha-

bilitation areas, and to observe first-hand

the extensive impact of galamsey (artisanal

small-scale) miners.

In a widely-broadcasted media address

following the inspection, the Minster noted

that illegal mining was “an organized crime

that must be eliminated in order to protect

the environment.” He noted that galamsey

could have a long-term, adverse effect on

the country’s economy if nothing was done

about it. He also called for support from tra-

ditional leaders to stamp out galamsey.

During his presentation, the Minister

commended Golden Star for introducing

an alternative livelihood project for the

miners and urged them to take advantage of

the project. DID YOU KNOW?

• The percentage of the Ghanaian rural population with access to water supply increased to 80% in 2011, from 73% in 2007. Golden Star has provided water supplies and water services that now supply more than 30,000 households.


including a market centre, early childhood

education centre, community centre, and

police station. The 215 houses were equipped

with electricity and toilets. A mechanized

water system was also installed to serve

the community.

The completed project, with construction

costs of approximately US$23M, further en-

hances our development model of successful

collaboration with our local partners as it con-

tinues to demonstrate what can be achieved

when we work together with our stakeholder

communities towards a common goal.

AWUNAKROM

The community of Awunakrom is located

close to our Dabokrom / Father Brown open-

pit operations. Following the successful

negotiation of a partial resettlement project

in May 2012, some 19 households were

resettled to a new location at Pretiat. The

project, with total costs of some US$3.8M,

included construction of community

infrastructure, a market, early childhood

development centre, 300-seat community

centre, and a water closet toilet facility with

a centralized biogas digester. Relocation and

resettlement packages, and a skills training

and sustainable livelihoods programme

completed the resettlement project.

RESETTLEMENTOver the last several years, Golden Star has carried out multiple resettlement projects in conjunction with our partners. At the local level, this includes negotiation teams and committees, traditional authorities, District Assemblies and, crucially, local residents themselves. At the national level, this includes the Land Valuation Board, the Inspectorate Division of the Minerals Commission, and the Environmental Protection Agency. These partnerships help to promote an inclusive and transparent process for all parties.

All of our resettlement projects are aligned with applicable Ghanaian laws as well as the International Finance Corporation (IFC) Performance Standard 5 on involuntary resettlement. This means that we seek to avoid, or at least minimise, adverse social and economic impacts, and seek to enhance the positive impacts of our intervention, which very often leads to large improvements in the lives of local residents.

TOGBEKROM

To allow for the development of a new tailings

storage facility for our Wassa operation, reset-

tlement activities for the Togbekrom group of

hamlets were initiated in 2010 for the over 750

inhabitants. The resettlement site, adjacent

to Ateiku, was constructed as a modern-style

community with over 260 structures, a local

road network, and community infrastructure,

and small scale mining business, we ceded

a portion of the highly prospective Prestea

surface concession back to the Government

of Ghana. The Minerals Commission has

now established the area for legal small

scale mining.

The preferred site for the construction of

the proposed raise bore / hoisting shaft for

the Prestea Underground Mine falls at the

current location of the Prestea Goldfields

International School. Therefore, a nine

member school relocation negotiation

committee, comprising representatives from

the Prestea Huni-Valley District Assembly,

Ghana Education Service, Prestea Goldfields

International School Board, the Himan –

Prestea community, and GSPL, was formed

and inaugurated on 22nd January 2013 by

the District Chief Executive of Prestea

Huni-Valley District. The mandate of the

committee is to reach a signed negotiated

relocation agreement for the school that is

acceptable to all represented parties.

DUMASI

The Dumasi community is located

approximately 4 km north of our Bogoso

processing facilities and atop the largest

undeveloped ore body on Bogoso’s

concession. Negotiations to resettle the

community commenced in 2007, and in

2013, under the guidance of the Dumasi

Resettlement Negotiation Team, we were

pleased to reach a negotiated resettlement

agreement acceptable to all stakeholders.

To accommodate the 2,500 residents, over

800 houses equipped with toilets, electricity,

and kitchens will be required. The details of

the new houses were substantially agreed with

individual compound owners in the latter half

of 2013. Preliminary earthworks and construc-

tion activities have started at the new site.

PRESTEA PROJECTS

The Prestea Projects Resettlement Action

Plan (RAP), which was submitted to the

Prestea Huni-Valley District Assembly

in November 2012, was developed to

minimise potential negative effects

on the people affected by the Bogoso

Prestea Underground Mine and Prestea

South projects. In accordance with the

IFC Performance Standard 5, Golden Star

works to avoid the need for resettlement.

For the Prestea Projects, we designed

project areas to avoid structures for which

Bogoso is not the legal tenant, and located

infrastructure in disturbed areas. As part of

our collaboration to formalize the artisanal


ANTI-CORRUPTION Golden Star strives to maintain the highest standards of transparency and professional integrity. We believe that all aspects of our business should be conducted in an honest, ethical, and transparent manner in accordance with all applicable laws and regulations.

Our participation in the Ghana Extractive Industries Transparency Initiative (EITI) exemplifies our commitments to anti-corruption efforts. In 2011 and 2012, we set a goal of providing records of our quarterly payments to government, and we are pleased to have achieved this goal for both years.

At the end of 2013, the Traditional authorities, stools, and District Assemblies were informed by letter of the estimated royalties that would be payable to them based on gold production and the location of that production. The allocations according to the legislation are provided in the following tables, in addition to our payments to the government.

DID YOU KNOW?

• Ghana has sustained an economic growth rate of 5-7% over two decades, and continued poverty reduction from 39.5% in 1999 to 28.5% in 2006. Golden Star, to date, has made payments to the Government of Ghana amounting to over US$298M.

• In 2013, over US$437M was paid to Ghanaians or Ghanaian registered companies by our Ghanaian operations.

NO. ENTITY SUB-ENTITY AMOUNT IN US$

Bogo- OASL

TRADITIONAL

AUTHORITIES

STOOL LANDS

DISTRICT

OASL OVERHEAD

BOGOSO TRADITIONAL AUTHORITY

HIMAN TRADITIONAL AUTHORITY

BOGOSO / BEPPO TRADITIONAL

AUTHORITY (NOT YET DEFINED)

ADAAMANSO TRADITIONAL AUTHORITY

TOTAL

BOGOSO TRADITIONAL AUTHORITY

HIMAN TRADITIONAL AUTHORITY

BOGOSO / BEPPO TRADITIONAL

AUTHORITY (NOT YET DEFINED)

ADAAMANSO TRADITIONAL AUTHORITY

TOTAL

PRESTEA HUNI-VALLEY

DISTRICT ASSEMBLY

AMENFI EAST DISTRICT ASSEMBLY

TOTAL

TOTAL OF 10%

2013 TOTAL

119,221

131,109

4,190

57,780

35,117

228,197

176,222

6,698

74,930

47,354

305,205

512,542

115,001

627,543

1,280,167

2013 Q4

21,179

32,800

-

18,837

8,224

59,862

41,001

-

23,547

10,280

74,828

136,948

27,674

164,622

326,493

2013 Q3

23,215

33,742

380

14,469

10,756

59,348

42,177

475

18,086

13,445

74,185

121,195

42,011

163,207

319,956

2013 Q2

28,504

33,794

207

17,618

7,530

59,151

42,098

258

21,948

9,381

73,686

138,873

23,793

162,667

324,010

2013 Q1

40,322

30,771

3,602

6,854

8,605

49,834

50,944

5,964

11,348

14,246

82,504

115,524

21,250

137,045

309,706

ROYALTIES (BOGOSO)

TABLE CONTINUED ON NEXT PAGE...


NO. ENTITY SUB-ENTITY AMOUNT IN US$

WASSA

OASL

TRADITIONAL

AUTHORITIES

STOOL LANDS

DISTRICT

ASSEMBLIES

OASL OVERHEAD

WASSA FIASE

MPOHOR

AHANTA

TOTAL

MAMPONSO

MPOHOR

MANSO

PRETSEA

TOTAL

MPOHOR WASSA EAST

TARKWA NSUAEM

AHANTA WEST

TOTAL

TOTAL OF 10%

2013 TOTAL

266,443

145,575

167,011

167,011

479,599

181,969

208,764

-

208,764

599,498

400,332

459,282

459,282

1,318,897

2,664,439

2013 Q4

68,244

56,741

33,048

33,048

122,839

70,926

41,311

-

41,311

153,549

156,038

90,884

90,884

337,807

682,440

2013 Q3

58,141

27,441

38,606

38,606

104,654

34,302

48,257

-

48,257

130,817

75,464

106,167

106,167

287,798

581,411

2013 Q2

69,316

23,102

50,833

50,833

124,769

28,878

63,541

-

63,541

155,962

63,532

139,792

139,792

343,117

693,165

2013 Q1

70,742

38,289

44,523

44,523

127,336

47,862

55,653

-

55,653

159,170

105,297

122,438

122,438

350,174

707,422

ROYALTIES (WASSA)

BOGOSO

WASSA

2013 Q2

937,299

509,474

1,006,388

995,919

2,850,446

30,913

421,289

12,433

6,764,164

777,563

373,786

759,342

4,757,234

317,173

3,444,301

46,138

698,260

-

-

11,173,801

2013 Q1

1,170,169

528,080

1,012,759

262,765

4,032,201

94,709

424,541

-

7,525,227

1,020,359

457,948

854,101

8,286,389

518,985

3,690,257

72,835

387,237

0

0

15,288,113

PAYE

SSNIT

VAT

IMPORT DUTIES

ROYALTIES

FEES, PERMITS,

LICENSES

WITHOLDING TAX

STAMP DUTIES

TOTAL

PAYE

SSNIT

VAT

CORPORATE TAX

IMPORT DUTIES

ROYALTIES

FEES, PERMITS,

LICENSES

WITHOLDING TAX

STAMP DUTIES

NATIONAL

STABLIZATION LEVY

TOTAL

2013 Q4

842,420

471,598

1,013,812

253,277

2,717,923

172,122

247,495

7,654

5,726,305

944,063

388,960

599,761

10,365,000

297,412

2,829,630

26,021

991,672

-

-

16,442,522

2013 Q3

726,279

494,191

1,269,148

800,719

2,321,527

16,011

278,490

35,402

5,941,771

618,726

382,901

613,885

84,280

244,959

2,755,506

47,751

902,916

-

-

5,650,927

2013 TOTAL

3,676,168

2,003,344

4,302,108

2,312,682

11,922,099

313,757

1,371,817

55,490

25,957,469

3,360,713

1,603,596

2,827,090

23,492,903

1,378,529

12,719,695

192,746

2,980,087

-

-

48,555,363

LIFE TO

DATE (AS AT

END 2013)

19,810,604

11,142,237

22,719,869

9,540,729

57,427,962

1,281,605

10,334,155

756,014

133,013,179

13,969,119

8,403,201

36,376,418

23,492,903

3,988,087

56,247,850

1,016,505

14,485,344

349,490

7,084,585

165,413,506

GOVERNMENT PAYMENTS


YEAR AT A GLANCE

2012

2,044

448

260

52

48

147

US$54M

102,440

US$0.76M

20

159

8

98

METRIC

# OF EMPLOYEES

# OF THIRD-PARTY CONTRACTOR EMPLOYEES

# OF GSOPP CONTRACTOR EMPLOYEES

% OF WORKFORCE FROM WESTERN REGION

% OF WORKFORCE FROM LOCAL COMMUNITIES

# OF HSEC SPECIALIST PERSONNEL

WAGES PAID

TOTAL HOURS OF TRAINING PROVIDED

EXPENDITURE ON TRAINING

# OF EMPLOYEE EDUCATION SCHEME PARTICIPANTS

# OF WOMEN EMPLOYED

% OF WORKFORCE THAT ARE WOMEN

% OF WORKFORCE BELONGING TO A UNION

2013

2,317

316

245

58.6

45.3

127

US$54M

155,492

US$0.78M

16

155

6.7

98

–

–

√

√

–

–

–

√

–

–

–

–

–

2012

3

26

0.24

396

METRIC

FATALITIES

# OF HSE AUDITS

LTIFR

# OF HAZARD INSPECTIONS

2013

1

43

0.38

414

X

√

X

√

OUR PEOPLE

HEALTH AND SAFETY

√ = IMPROVEMENT X = NEEDS IMPROVEMENT – = SAME


2012

532,489

867,794

3,689,510

98

320,397

124

US$4.8M

272,022

37.5ML

100

100

95

METRIC

ML OF WATER ABSTRACTED

ML OF WATER RELEASED

ML OF WATER RECYCLED

% OF WATER SAMPLES IN EPA COMPLIANCE

LITRES OF WASTE OIL RECYCLED

HA OF LAND BEING REHABILITATED

TOTAL ENVIRONMENTAL EXPENDITURE

MWH OF ELECTRICITY CONSUMED

DIESEL CONSUMPTION

% OF BLASTS IN COMPLIANCE WITH MONITORING PROGRAMME

% OF BLASTS IN COMPLIANCE WITH NOISE LIMITS

% OF BLASTS IN COMPLIANCE WITH VIBRATION LIMITS

2013

465,034

995,620

4,503,570

98

313,721

104

US$4.4M

254,632

38.8ML

100

100

96

ENVIRONMENT

√

√

√

–

–

X

–

–

X

√

√

X

*ML = MEGA-LITRES √ = IMPROVEMENT X = NEEDS IMPROVEMENT – = SAME


2012

263

4,464

169

106

US$0.38M

US$2.3M

METRIC

# OF FORMAL CONSULTATIONS

CONSULTATION PARTICIPANTS

# OF COMMUNITY MINE CONSULTATIVE COMMITTEE MEETINGS

# OF COMMUNITY COMPLAINTS

GSDF CONTRIBUTIONS

GSDF CONTRIBUTIONS TO DATE

2013

314

6,020

153

69

US$0.33M

US$2.36M

√

√

–

√

–

–

COMMUNITY RELATIONS

GSR CORPORATE RESPONSIBILITY REPORT 2013 | Partnerships for Development

2012

52

50

77

90

METRIC

# OF ENVIRONMENT INSPECTIONS

% OF JOBS LET TO TENDER

# OF SOLE SOURCED CONTRACTS

% OF STAFF ACKNOWLEDGING SUSTAINABILITY POLICIES

2013

115

38

58

100

√

X

√

√

CORPORATE GOVERNANCE

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